Nikkei likely to retest nearly 5-yr high, BOJ set to start super-loose policy
TOKYO, April 8 (Reuters) - The Nikkei share average is expected to open higher and retest the 13,000-mark on Monday, led by exporters as the yen continued to tumble against the dollar on a report that the Bank of Japan would begin buying longer-dated bonds immediately to beat deflation. The Nikkei is likely to trade between 12,950 and 13,200, strategists said, shrugging off a weaker-than-expected U.S. jobs report, which saw just 88,000 payrolls added in March, well below market expectations for a 200,000 increase. Nikkei futures in Chicago closed at 13,090 on Friday, up 2.2 percent from the Osaka close of 12,810. "The nonfarm payrolls were very bad. The New York stocks fell. But for the Japanese market, the currency is a much more important factor. The yen depreciation continues to 98 to the dollar," said Takashi Hiroki, chief strategist at Monex Inc. The yen fell as much as 1.2 percent to 98.78 to the dollar, the lowest since June 2009, after the Nikkei newspaper said the Bank of Japan would this week buy 1.2 trillion yen of government bonds with more than five years remaining to maturity as it begins its super-loose monetary policy. The Japanese currency was last traded at 98.56 to the dollar. On Friday, the Nikkei surged as much as 4.7 percent to above 13,000 for the first time since August 2008 before succumbing to profit taking to close up 1.6 percent at 12,833.64. The session's gain broke the resistance at the 50 percent retracement of its slide from February 2007 to October 2008, at around 12,650. The broader Topix index climbed 2.7 percent to 1,066.24 in the previous session. The benchmark Nikkei has surged 48 percent since mid-November, when Prime Minister Shinzo Abe unveiled in his election campaign expansionary fiscal and monetary policies to revive the world's third-largest economy. > S&P posts 2013's worst weekly drop on jobs data > Yen slides as BOJ begins new age with a bang > Treasury yields sink as jobs data hint at drag on growth > Gold rallies as weak U.S. jobs data affirms Fed easing > Brent oil falls to 8-month low weak U.S. jobs report STOCKS TO WATCH --TOKYO ELECTRIC POWER CORP Radioactive water has apparently leaked from another underground storage tank at the crippled Fukushima Daiichi power plant, Tokyo Electric Power Co said on Sunday. --GS YUASA CORP, ALL NIPPON AIRWAYS, JAPAN AIRLINES With a successful flight on Friday, Boeing moved closer to proving that a revamped safety system can prevent batteries on its new 787 Dreamliner from catching fire or overheating, and getting the plane back into service. --TOSHIBA CORP Nuclear consortium Fennovoima said it would choose Russia's Rosatom or Toshiba to supply a reactor for its planned nuclear power plant in northern Finland, dropping France's Areva .
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